Do not include any employer lump sum payments in arrears or non-superannuation annuity payments in arrears shown at 'Lump sum E' on your payment summary. These amounts are dealt with at question 24 Other income. Similarly, 'lump sum payments in arrears' shown on your PAYG payment summary - superannuation income stream are dealt with at question 7 Australian annuities and superannuation income streams.

Do not include payments for early retirement or genuine redundancy shown at 'Lump sum D' on your PAYG payment summary - individual non-business anywhere on your tax return, as they are not taxed.

If you do not have all your payment summaries or comparable statements, or if any of your comparable statements do not show an amount you received during the year that is either a 'Lump sum A' or a 'Lump sum B' contact your employer or payer. If you are unsuccessful in obtaining any of these, there is information about making a statutory declaration in PAYG payment summary - individual non-business.

If you have received a PAYG payment summary - foreign employment showing an amount at 'Lump sum A' on which foreign tax has been paid you will also need to include the amount at U in item 20.

Completing your tax return

If you do not have any amounts shown at 'Lump sum A' on your payment summaries, go to step 4.

Amounts shown at 'Lump sum A' on your payment summary

Step 1

Add up the total tax withheld from lump sum A amounts shown on your payment summaries. Do not include any amounts of tax withheld you have included at any other item, such as item 1 or 2.

Write the answer under Tax withheld at the left of R item 3.

Step 2

Add up all lump sum A amounts on your payment summaries.

Write the answer at R item 3.

Step 3

Print in the TYPE box at the right of R:

R

if the amount related to a genuine redundancy payment, an early retirement scheme payment, or the invalidity segment of an employment termination payment or superannuation benefit

Amounts shown at 'Lump sum B' on your payment summary

Step 4

Add up the total tax withheld from lump sum B amounts shown on your payment summaries. Do not include any amounts of tax withheld you have included at step 1 above or at any other item, such as item 1 or 2.

Write the answer under Tax withheld at the left of H item 3.

Step 5

Add up all lump sum B amounts on your payment summaries.

Divide the total by 20 to work out 5% of the amounts. Only 5% of these amounts is taxable.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.